Syndication Distributions Questions

[Brian Gerace]

Investing as a syndication limited partner, when is capital returned.  I know there are alot of variables(buy hold, vs value add, etc), but what is typical.  Let's assume a buy an hold scenario that has stabilized.  If there is a preferred return of 8% that is distributed that is a return on capital, correct? What if the property is a home run and there are funds available to pay out more.  Is it distributed? And if so is it a return on capital or a return on capital? Any thoughts are appreciated about typical distribution scenarios.

[Sam Grooms]

Capital is usually returned on an exit or refinance. 

You are distributing funds as there is cash flow available. The pref of 8% does not dictate when you distribute to investors. It dictates who gets paid first. This is all return ON capital.